Publicação
A real option approach to evaluate onshore wind energy investments with government incentives: The Portuguese case
| Resumo: | In Portugal, wind energy contributes approximately 29% of the total energy production, and investments in wind energy projects, both nationally and globally, have exhibited a consistent upward trajectory in recent years. This phenomenon is primarily attributable to the heightened attractiveness of wind energy as an energy source. Several factors contribute to this trend, including increasing concerns regarding climate change, which are becoming progressively more pronounced. Additionally, the recent increase in electricity prices, driven partly by the Ukraine-Russia conflict, has reinforced the appeal of wind energy investments. Government incentives, particularly Feed-In Tariffs, have also played a pivotal role in fostering this growth. Considering these dynamics, I propose to depart from the conventional Net Present Value (NPV) framework, which does not account for uncertainties associated with weather conditions and geographical factors. Instead, I aim to employ the Real Options Approach as a more rigorous methodology to identify the most economically viable regions in Portugal for onshore wind energy investments. |
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| Autores principais: | Vicente, Ana Maria Dias |
| Assunto: | Real options approach Onshore wind energy Net present value (NPV) Feed-in tariffs Teoria das opções reais Energia eólica onshore Valor presente líquido |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | ISCTE |
| Idioma: | inglês |
| Origem: | Repositório ISCTE |
| Resumo: | In Portugal, wind energy contributes approximately 29% of the total energy production, and investments in wind energy projects, both nationally and globally, have exhibited a consistent upward trajectory in recent years. This phenomenon is primarily attributable to the heightened attractiveness of wind energy as an energy source. Several factors contribute to this trend, including increasing concerns regarding climate change, which are becoming progressively more pronounced. Additionally, the recent increase in electricity prices, driven partly by the Ukraine-Russia conflict, has reinforced the appeal of wind energy investments. Government incentives, particularly Feed-In Tariffs, have also played a pivotal role in fostering this growth. Considering these dynamics, I propose to depart from the conventional Net Present Value (NPV) framework, which does not account for uncertainties associated with weather conditions and geographical factors. Instead, I aim to employ the Real Options Approach as a more rigorous methodology to identify the most economically viable regions in Portugal for onshore wind energy investments. |
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